Challenger Acq Ltd - Potential RTO and suspension of listing
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("Challenger" or the "Company")
Potential reverse takeover and suspension of listing
The LOI contemplates Challenger making an offer ("Offer") to acquire all of the shares of Cindrigo, subject to completion of a reorganization between Cindrigo and its holding company,
On the making of the Offer, Cindrigo will be entitled to appoint two directors to the board of Challenger at which point two of the existing directors will step down. It has been agreed that the two remaining directors of Challenger will step down if requested at any time to do so by Cindrigo.
The consideration payable under the Offer will be the issue to Cindrigo shareholders of shares and/or convertible loan notes of Challenger such that, following completion, and conversion of the convertible notes issued as part of the consideration, the existing shareholders of Challenger together with the Company's existing holders of convertible notes will between them hold 3% of the share capital.
The current board of Challenger has unanimously approved the LOI and there is, subject-to-contract, agreement between the Company and all the convertible noteholders to facilitate this transaction.
Should the Offer complete, it would constitute a Reverse Take Over ("RTO") under the Listing Rules. Therefore, at the request of the Company the FCA suspended the Company's listing on the standard segment of the Official List and trading on the Main Market of the
Mark Gustafson, Challenger's Chief Executive Officer, said, "This is a very positive development for the Company. Our board has worked relentlessly throughout late 2019 and this year to secure an appropriate RTO opportunity. We will now work actively with Cindrigo towards the making and completion of the Offer."
For more information visit www.challengeracquisitions.com or enquire to:
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+1 604 454 8677
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+44 (0) 20 7236 1177
This information is provided by RNS, the news service of the
Quick facts: Challenger Acquisitions Limited
Market Cap: £410.2 k
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